Thousands of Londoners may lose their homes after housing benefit changes

A report by officials at Westminster council says the effects of the cap could lead to thousands of primary school children moving schools and vulnerable adults, including elderly people with dementia, being forced to move out of the borough.

A second report by the authority also nails the Conservative myth that many council and housing association households are living in subsidised accommodation and earning more than £100,000 a year. It could not find a single council tenant in Westminster and only 26 housing association tenants in this category. The officials – using Department of Work and Pensions data – say Tory-controlled Westminster will be the worst affected borough in the capital, but a similar situation is likely to be replicated in other authorities.

Some 6,234 households living in the private rented sector in Westminster receive the benefit. More than 5,000 – 81 per cent – currently pay rents above the new cap levels. The Government will save £40 million in benefit payments to tenants but the council will receive only £1.1 million from ministers to cover hardship payments for the worst cases. Some 4,000 children and young people live in the affected households. Read More: